American chemical corporation Dow has taken a minority stake in the Hanseatic Energy Hub (HEH) that is constructing the Stade LNG import terminal in Germany.
On 11 April, Dow informed it has signed a definitive agreement to take a minority stake in the Hanseatic Energy Hub. Therefore, it is now working with the current members of HEH to advance Germany’s capabilities to import supplies of LNG through the construction of an import terminal.
The HEH consortium now includes Dow, Fluxys, Partners Group, and Buss Group. The consortium is planning to build, own, and operate an import terminal for LNG on Dow’s Stade, Germany industrial park.
The Stade LNG terminal is to be operational by 2026 with the capacity of 13.3 billion cubic metres (bcm) of LNG per year.
Dow said it is contributing the land for the construction of the terminal as well as infrastructure services.
The project is subject to a final investment decision, which is to take place by 2023.
Moreover, the terminal directly supports the joint statement between the European Commission and the United States on European energy security by satisfying up to 15 per cent of Germany’s current demand.
The agreement would also allow the U.S. to meet nearly 25 per cent of its goal to export 50 bcm of natural gas annually to Europe by 2030.
Stade LNG supporting energy transition
Additionally, the terminal will repurpose off-gas heat at the Dow site for the carbon emissions-free regasification of the liquefied gas back to its gaseous state.
The Stade LNG terminal is to become a central hub for the import of LNG to Germany. Besides LNG, the terminal is also designed for low-carbon energy sources such as bio-LNG and synthetic methane in the first phase. In the second phase, the hub will also import hydrogen-based fuels, such as ammonia.
As a zero-emissions terminal, the Stade LNG does not release any CO2 during operation because the heat required for the regasification of the LNG is available as process waste heat from the nearby industrial and chemical park.
“This collaboration to construct an LNG import terminal in Germany takes a major step in enabling a stable, cost-effective and sustainable supply of energy to Europe,” said Neil Carr, president of Dow Europe, Middle East, Africa, and India. “For Dow, this allows us to make a significant contribution to transforming the energy supply in Germany in support of its 2045 climate targets while increasing the competitiveness of Stade, a site important for serving Dow customers throughout Europe.”
Germany’s dependency on natural gas is to increase as a transition fuel until sufficient renewable energy comes available longer term. Today, Germany receives approximately half of its natural gas through pipeline imports from Russia and the country currently has no LNG regasification and import facilities.
Source: Offshore Energy